Kira needs to borrow $250,000 to purchase a home. What are the monthly payments on a 15-year mortgage at 6% compounded monthly? What are the monthly payments for a 30-year mortgage at 7%, compounded monthly? You won a $40,000,000 lotto! The payment by the state will be made in 20 installments of $2,000,000 equal payments at the beginning of the next 20 years. You think you can earn 8% on reinvested funds. Your DePaul Business School friend, Becky Blue Demon, works for a company that pays lump-sum amounts in return for the lotto cash flows. a. What is the annuity due present value of the cash flow stream? b. If your friend's firm offers $16 million, what is their implied return on the cash flows? c. As a rational Scarlet Hawk should you accept her offer? d. If the firm can borrow at 10% to fund the $16 million, should they rationally make the offer